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Americas


Revenue in the US was flat versus 2009 (in constant currencies down 5 percent). 2010 marked the third year in a row of declining paint demand, with non-residential markets being particularly weak. We continued to invest in the Glidden brand and increased Glidden sales and market share in the retail segment. The company-owned stores have been rebranded into Glidden professional Paint Centers. Partnering with Home Depot, we also successfully launched the Martha Stewart Living brand. In September, we were selected by Walmart to be the primary paint supplier for their US stores. Walmart shipments started in the last quarter of 2010 and included the initial shipments of Better Homes and Gardens (BH&G) and Glidden brands in preparation for the store resets beginning in January 2011.

In Canada, 2010 revenue was 14 percent above 2009 (in constant currencies: down 1 percent). We started the year strongly, especially in retail. However, due to changes in the Canadian government’s home purchase credit and tax incentive, we experienced lower demand in the second half of the year. We continued to open new stores in Canada in order to further strengthen our stores network. Additionally, we signed a new five-year contract with a key customer in Canada, RONA, in Q4 and we introduced new product lines in Canadian Tire and The Home Depot. Both the US and Canada experienced higher raw material costs and shortages, particularly titanium dioxide and latex resins in the summer.

In Latin America, full-year revenue was 25 percent above 2009 (in constant currencies: 10 percent). All regions contributed to the growth, which was driven by improved market conditions and investments in brands and distribution. Volume was positively impacted by new product launches. During 2010, we accelerated the Tudo de Cor Minha Casa (I want colors for my house) program. This initiative stimulates consumers to enter into a neighborhood-based contest to win a free repaint of the front of their house. More than 500 of these community projects were completed. In October, we launched the Color Futures 2011 book with a regional approach in our main growth regions. The campaign has reached approximately 800 architects and other clients.

Q4 revenue in the Americas increased by 15 percent (in constant currencies: 3 percent), mainly driven by Latin America. Volume development in the US stabilized in Q4. EBITDA improved significantly from prior year due to improved performance in the US and Latin America.

 

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